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wlad13 [49]
3 years ago
15

Activity-based costing uses Group of answer choices departmental pools and a single cost driver. numerous cost pools and numerou

s cost drivers. one plantwide pool and a single cost driver. one plantwide pool and numerous cost drivers
Business
1 answer:
avanturin [10]3 years ago
7 0

Answer:

numerous cost pools and numerous cost drivers.

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.

On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.

An activity-based costing (ABC) can be defined as a method of costing that identifies the numerous activities in a business firm and assigns the cost of each activity to their respective drivers based on their consumptions.

Activity-based costing (ABC) uses numerous cost pools and numerous cost drivers.

Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

Cost pool is simply the amount of money spent by a firm on a particular activity.

In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;

Activity rate = total overhead cost/activity for the activity cost pool.

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finlep [7]
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8 0
3 years ago
Maria Alverez has received a paycheck for $250, which she wishes to cash at her bank. She will need to use a blank endorsement o
nlexa [21]

She would need an Address an   Social Security number (or ITIN)  with a

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8 0
3 years ago
The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would l
Art [367]

Answer:

2.6 years

The appropriate response to carry out the project if the payback period is within the acceptable payback period of the company

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback period = amount invested / cash flow

Cash flows is used in calculating the payback period.

To derive the payback period from net income, add depreciation to net income

$82,000 + $42,000 = $124,000

$321,000 / $124,000 = 2.6 years

I hope my answer helps you

4 0
3 years ago
Annual maintenance costs for a particular section of highway pavement are $2500. The placement of a new surface would reduce the
rewona [7]

Answer:

The maximum investment is $6,360.111

Explanation:

Giving the following information:

The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.

We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.

NPV=∑[Cf/(1+i)^n]

Cf= cash flow

<u>For example:</u>

Year 1= 500/1.05= 476.19

Year 3= 500/1.05^3= 431.92

Year 5= 1,000/1.05^5= 783.53

NPV= 6,360.111

The maximum investment is $6,360.111

6 0
3 years ago
Lubbock county is planning to construct a bridge across the Rio de Lubbock to facilitate afternoon skiing in the El Dusto ski ba
Anarel [89]

Answer:

575,010.25

Explanation:

i = 5%. n = 20 Years. P = 6,500,000.

Annual Maintenance Cost for the first five years, A1 = 25,000.

Annual Maintenance Cost from year 6 thro' 15, A2 = 30,000.

Annual Maintenance Cost from year 16 thro' 20, A3 = 35,000.

Overhaul Costs = 500,000 at year 10.

EUAC = [6,500,000 + 500,000 (P/F, 5%, 10)] (A/P, 5%, 20) +

25,000 +[{5000 (F/A, 5%, 5) + 5000(F/A, 5%, 15)} (A/F, 5%, 20)]

= [6,500,000 + 500,000 (0.6139)] (0.0802) +

25,000 +[{5000 (5.526) + 5000 (21.579)}(0.0302)]

= 545,917.39 + 29,092.86 = 575,010.25

6 0
3 years ago
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